A new study by the BBC finds many popular mobile games in the United Kingdom (UK) do not comply with rules set by the UK Advertising Standards Authority that require informing players about loot boxes in their ads.
The UK Advertising Standards Authority (ASA) requires game makers to mention loot boxes in ads. However, the study finds only two of the top 45 games on Google Play inform their players about loot boxes.
This has raised concerns as people often compare these kinds of games to gambling and are said to target those with or prone to gambling addiction. Experts and watchdog groups have also expressed concerns, they believe the existing indistinct rules are making the problem worse.
As reported by the BBC, Dr. Jane Rigbye, who runs the Young Gamers and Gamblers Education Trust (Ygam), stressed the vitality for gaming companies to keep young players safe. While people from the ASA said they are keeping a close eye on the gaming world, some believe that the authority does not have enough power to enforce rules.
Game makers’ argument
Game makers argue that loot boxes are like buying a surprise toy. However, others think that receiving random prizes can make people addicted.
A report from Norway’s Consumer Council in 2022 called loot boxes unfair and said they could cause financial problems. Despite this, the UK government is yet to introduce stricter rules and has only asked the gaming industry to make its own rules.
Trade organisation Ukie put out rules last year saying games must tell players about loot boxes before they buy. However, few companies have complied with these rules. Studies find most games mention loot boxes in hard-to-find information sections. This makes players not know about the financial risks.
Game maker Adrian Hon, slamming the industry for not taking responsibility, said loot boxes get people hooked and inflict harm. He said the least the companies can do is inform that loot boxes are there in a game. However, many companies care more about making money than protecting customers.
Leon Y. Xiao, a researcher, said regulators should take their time to enforce rules, noticing that ASA’s warnings are often ignored by game makers.
Loot boxes bring in about $15 billion each year. The concern is that if children see things that look like gambling, it makes risky choices seem normal, which could potentially lead to gambling problems when they grow up.
Elevate your business at SiGMA Eurasia Summit, February 23-25, 2025. Connect with 14,000+ industry leaders, hear from 400+ expert speakers, and seize new opportunities in Dubai.